New Technology Set to make Waves in Car Insurance

Two Manchester firms have come up with a revolutionary proposal of having a new type of Car Insurance which will have drivers pay as they go. This latest technology, Coverbox, will use global positioning technology that will supervise the distance covered by your car and the time used by the vehicle. The technology will utilise this information to generate a bespoke insurance bill and the rates will differ according to the time when it is being used- whether your car is being used during peak hours or during off-peak period. This kind of insurance cover is being provided by Co-op and Equity Red Star while the gadget is being manufactured by one of UK’s leading automotive security companies, Cobra UK.

This instrument also helps in tracking stolen vehicles too. About 100 fitters have been employed by the companies who can fit the instrument in less than an hour. The Stockport-based software specialist CDL takes care of the admin system and database which generates the insurance bill. CDL employs about 260 people and has a current turnover of £17.5m. It has also opened a new £6m headquarters in King’s Reach Road.

According to Sandy Dunn of Cobra UK, the people and the motor industry are now in a position to accept the pay-as-you-drive insurance. Though a few other companies have tried this before, but the technology was outdated and therefore not accepted by the consumer. Sandy Dunn states that they have used the latest technology which has a proven track record in leading car manufacturers in Europe and Japan.

Customers sign up and feed in the approximate miles they would be covering. This helps in generating an estimated bill amount and the Coverbox then provides exact bills based upon driving habits. If the motorists cover lesser miles than stated, then they either get a refund or the amount gets adjusted in the next insurance bill. It is more like a monthly utility bill. However, drivers who drive at off-peak time and cover fewer miles are less likely to be penalised for accidents or rash driving than those using their cars more frequently and during peak times.

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